First time home buyers happen to be one of Scott favorite type of buyer. His love for educating his buyers, and patience throughout the processes have helped him to build life-long friendships with many of his clients.
The challenge of buying a home for the first time can seem so daunting that it’s tempting to either just go with the first house that falls in your price range or continue to rent. Richardson Realty Associates will help you demystify the process and get the most out of your purchase, we’ll examine what you’ll need to consider before you buy, what you can expect from the buying process itself, and some handy tips to make life easier after you purchase your first home.
Benefits of buying a home
Homeownership brings many benefits. When you buy your first home, you’ll become part of a community and experience the security of owning the roof over your head. As a homeowner, you may also be able to:
- Take control. Avoid rent increases and cancelled leases while creating a home that meets your needs and tastes.
- Build home equity. Grow your assets with the principal portion of your mortgage payments as your property value potentially increases.
- Get tax benefits. Deduct mortgage interest and real estate property taxes on your income tax returns. (A tax advisor can be consulted regarding the deductibility of interest).
- Build your credit. Create a strong credit history by making on-time mortgage payments.
Considerations Before You Buy
The first thing you’ll need to determine is what your long-term goals are and then how home ownership fits in with those plans. It could be that you’re simply looking to transform all those “wasted” rent payments into mortgage payments that actually give you something tangible. Others see home ownership as a sign of their independence and enjoy the idea of being their own landlord. Narrowing down your big-picture homeownership goals will point you in the right direction.
HERE ARE FIVE QUESTIONS TO ASK YOURSELF:
What type of home best suits your needs?
You have several options when purchasing a residential property: a traditional single-family home, a townhouse, a condo, or a multi-family building with two to four units. Each option has its pros and cons, depending on your homeownership goals, so you need to decide which type of property will help you reach those goals. You can also save on the purchase price in any category by considering “a diamond in the rough” — a place you can transform with a bit of ingenuity or some renovations.
As you begin your search, keep these items in mind:
Location, features, and amenities
- Location is as important as appearance or size. Do you need to be in a particular school district, close to a job, public transportation, or day-care facility?
- Consider which features and amenities you want in your new home using our “HOME WISH LIST “. Separate “wants” from “needs” and prioritize your list.
Types of homes
- A single-family home is one of the most popular options.
- Condominiums, town homes, and co-ops all offer different lifestyle and ownership features. You’ll need to budget for monthly fees for garbage and snow removal, landscaping, and similar services charged by these communities.
What specific features will your ideal home have?
While it’s good to retain some flexibility in this list, you’re making perhaps the biggest purchase of your life, and you deserve to have that purchase fit both your needs and wants as closely as possible. Your list should include basic desires, like neighborhood and size, all the way down to smaller details like bathroom layout and a kitchen that comes with trust-worthy appliances.
How much mortgage do you qualify for?
Before you start shopping, it’s important to get an idea of how much a lender will actually be willing to give you to purchase your first home. You may think you can afford a $300,000 home, but lenders may think you’re only good for $200,000 depending on factors like how much other debt you have, your monthly income and how long you’ve been at your current job.
How much home can you actually afford?
On the other hand, sometimes a bank will give you a loan for more house than you really want to pay for. Just like with the purchase of a new car, you’ll want to look at the house’s total cost, not just the monthly payment. Of course, looking at the monthly payment is also important, along with how much down payment you can afford, how high the property taxes are in your chosen neighborhood, how much insurance will cost, how much you anticipate spending to maintain or improve the house, and how much your closing costs will be. Richardson Realty Associates has a solid network of Mortgage Professionals ready to educate and assist any home buyer with
RICHARSON REALTY ASSOCIATES WILL HELP YOU FIND YOUR HOME AND GUIDE YOU THROUGH THE PURCHASE PROCESS
Our team of experienced agents will help you locate homes that meet your needs and are in your price range, then meet with you to view those homes. Once you’ve chosen a home to buy, we can assist you in negotiating the entire purchase process, including making an offer, getting a loan, and completing paperwork. Our in-depth industry knowledge and expertise can help you prevent any pitfalls you might encounter during the process.